Tax Holiday: Invest In These Industries And Avoid Tax For 36 Months
Do you intend to register a company and enjoy government’s tax holiday granted to 27 industries?
Here is a list of the companies and all you need to do is to check if you qualify.
The Federal Government has lifted the administrative suspension on processing Pioneer Status Incentives (PSI) applications and released the list of industries that will enjoy tax holiday.
With the lifting of suspension, a decision taken after the critical reforms to the incentive regime, comes new guidelines for PSI applications as well as a revamped list of pioneer industries and products.
The decision was made known on Monday by the Minister of Industry, Trade and Investment, Okechukwu Enelamah.
According to the Minister, the Federal Executive Council (FEC) also made a biennial review of the list going forward.
“In line with the reform provisions, all additions will be added to the list immediately, and all deletions will be removed from the list in 3 years,” a statement by the spokesman for the Minister, Constance Ikokwu, read.
Dr. Enelamah explained that the review of the list of Pioneer industries and products was done to bring it in line with the economic realities of Nigeria and the Economic Recovery and Growth Plan (ERGP)
“The Federal Government is committed to encouraging and attracting investments into critical sectors of the economy which will significantly impact development and deliver key benefits to the country.”
“These benefits include Economic Growth and Diversification; Industrial and Sectoral Development; Employment; Skills and Technology Transfer; Export Development; and Import Substitution,” the Minister explained.
The new application guidelines provide information on the considerations for assessing new PSI and extension applications.
It further outlines the application processes and timelines while detailing the ongoing obligations of beneficiaries.
The PSI grants companies making investments in qualifying industries and products - a tax holiday from the payment of company income tax for an initial period of three years, with the possibility of an extension for one or two additional years.
Note however, that an industry or product is designated as pioneer if it is not being carried on in Nigeria on a scale suitable to the economic requirements of the country or not at all; or where there are favourable prospects for further development; or if it is expedient in the public interest to encourage the development and establishment of an industry in Nigeria.
For more information and to download the new application forms, guidelines for PSI and Pioneer list, the government has made it available on the website of Nigeria Investment Promotion Commission (NIPC) www.nipc.gov.ng